Locum vs. Employed Income Calculator

Annual Gross Locum Revenue ($)

Total 1099 billings before expenses.

Annual Business Expenses ($)

Licensing, DEA, CME, accounting, malpractice if self-funded.

Pre-tax Retirement Contributions ($)

Solo 401(k), SEP IRA, or similar. (Optional)

Comparison W-2 Employed Salary ($)

Base salary + bonus for the W-2 role.

Filing Status

State Selector

Approximate state income tax rates for planning purposes — results are estimates only and do not reflect progressive brackets, local taxes, or nonresident sourcing rules.

Disclaimers:

1. This calculator provides estimates for planning and educational purposes only. It does not constitute tax or legal advice.

2. QBI deduction shown is a simplified 20% planning estimate. Actual deduction may be limited by taxable income, wages, qualified property, and SSTB rules. Consult a CPA.

3. State income tax is an approximation using a single flat rate. State taxes are often progressive, and nonresident, reciprocity, and multi-state rules are not reflected.

4. Federal tax brackets and parameters reflect 2026 IRS guidance. Tax law changes frequently — verify current figures with a licensed tax professional.

5. QBI deduction made permanent by the One Big Beautiful Bill Act (OBBBA), Public Law 119-21, signed July 4, 2025.

6. W-2 comparison assumes employer pays the other half of FICA. Employer-provided benefits (health insurance, retirement match, malpractice) are not included and would further reduce the effective cost comparison for employed physicians.

7. Locum physicians working in multiple states may owe taxes in each work state. This calculator uses a single state rate as a planning approximation only.